The Challenge: The Council held a parcel of underutilised surplus land that was effectively "dormant capital" on the public balance sheet. While not a "prime" development site, its inactivity represented a significant opportunity cost. The challenge was to activate this lazy asset and extract maximum public value without triggering the community friction often associated with standard land disposals. The site needed a transaction structure that could justify its divestment by delivering a clear, tangible return to the ratepayer, as well as delivering planning framework and social housing outcomes.

Our Intervention: Transactional Innovation and Strategic Fund Generation We designed a publicly defensible EOI process that used the market to bid on both commercial and social outcomes, effectively turning a disposal into a multi-leveraged strategic acquisition fund.

Our Impact:

• Strategic Leverage: The sale enabled three distinct, high-priority Council mandates from a single transaction: (1) Generated revenue towards purchasing future strategic open space, (2) enabled future built form alignment critical to the St Kilda Road South Land Use and Urban Design Framework (3) future delivery of affordable housing via enforceable s173 Agreement.

• Dual-Pathway EOI: Created a transparent, auditable evaluation plan around both fully commercial bids and innovative affordable housing bids (with an abated purchase price and Section 173 obligations)

• De-risked Approval: Ensured the entire process was aligned with the rigorous requirements of the Local Government Act (s114), providing maximum public defensibility and de-risking the sale from political or legal challenge.

• Social Outcome Execution: Successfully leveraged the transaction to secure market-led affordable housing outcomes and community benefit obligations.